More housing control from Westminster

Housing benefitsNational governments often claim that they support local democracy; however, the evidence is often otherwise.

Take housing benefit – part of the £12bn in welfare savings is to be made by the national government instructing boroughs to reduce their rents.  This will save the national government £1.4bn in housing benefit by reducing rents paid to social landlords.  The Institute of Fiscal Studies estimates that this will mean a loss of £2.5bn to boroughs which could be made available for new housing.  Overall government loses out but the centre gains and localities lose.

This measure will have the net effect of reducing the provision of housing.  If we want more housing where it is needed than we need to look closely at:

  • Ensuring that all places have a duty to house their own in their area. A village would have to build houses to enable anyone born in the village to live there – a town likewise.
  • Replacing business rates and council tax with land tax. This would end the tax on improvements and focus the tax on the value of the land instead.
  • Removing stamp duty on house purchases and fund this change by reducing the capital gains exemption for domestic properties. This would allow people to move house more frequently and encourage people to spread their investments to the betterment of the economy.

If locals had to provide homes for their own the number of houses would increase without having to change the planning laws and/or the national government poking its nose into areas where it is not wanted or needed.

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